Gnosis Chain — Cheap Gas Fees Reign Supreme
People care about gas fees
The hard reality is that end users care dearly about gas fees. Nobody wants to pay more for something that they can get cheaper elsewhere. It’s for that exact reason that Arbitrum, OP, and all these L2s picked up steam — you can do Ethereum things for 1/10th of the cost. Many users discuss the power of all these L2s because they scale Ethereum. Well, scaling mostly means making it available to the masses — but it just means making it cheaper. Yes, there are other reasons for L2s, but for this discussion, let's talk about gas fees.
Looking at the table below, one of the most attractive parts of Gnosis Chain is the affordable or cheap gas fees. Not only that, it is much lower than the top 5 in the list by a large margin. Cheap gas fees are the ignition to the flywheel. Users can enter and test the ecosystem — all this drives adoption. Builders can build and deploy apps, which drives adoption even more, and the flywheel starts churning. As a builder and a user who has built a few Ethereum apps, just deploying and thinking of the costs has always scared me. What? Do you need 1 ETH to deploy? That much?
Stablecoin as gas fees makes sense.
Having a stablecoin as a gas fee never made more sense in the world of fluctuating gas. The ongoing joke of up and down crypto is no joke. Ethereum may be $2000 one day and $3000 the next, which is entirely possible in volatile markets. While wild swings may be great opportunities for speculators and traders on Mu Exchange, more is needed for users and builders of the space — it becomes hard to gauge and measure how expensive things are.
The reality is stablecoins are great for value analysis. There’s a reason why the majority of tokens are denominated in stablecoins (USD mainly, of course). Of course, unless you’re a super OG, you probably don’t value BTC in ETH or vice versa. We view value in USD, which has been ingrained in our minds. Hence, using a stablecoin as a gas fee makes sense. You execute in $xDAI, which is pegged to one USD.
Monolithic Blockchains are better.
The founder of Gnosis Chain shares the same sentiment as me — questioning the current status of the crypto ecosystem. The issue with the abundance of L2s right now is the question is:
Are we really scaling?
The reality is that the current L2 environments are narrative and airdrop-chasing. The availability of a good bridge is also concerning; yes, there are good ones, but most are still cumbersome and not the most fluid experience. With all the L2s out there, the security assumptions are another ironic thing I can’t wrap my head around sometimes. So they trust the decentralized nature of Ethereum, but for cheaper gas fees, they go to a chain with a single sequencer? It seems counter-intuitive to me, but I digress.
For this reason, my thesis on the monolithic blockchain has been more vital than ever—cheaper gas fees without the need to send transactions to the mainnet. Let’s be honest — if Ethereum Mainnet had as fast transactions and cheap gas fees as Gnosis Chain , fewer L2s would exist.
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